Have you moved or changed jobs? Has your vehicle been destroyed? Did you get married? So many situations that can allow you to terminate your contract.
Decryption of special cases and the procedures for terminating your car insurance to follow.
Car insurance – Special cases authorizing termination of the contract
You can terminate your contract without waiting for the expiry date if your situation has changed (see the cases below), and if this change may have consequences for your insurance.
The law specifies these situations. You must cancel within 3 months of the event. Termination takes place one month after the receipt by the insurer of your registered letter.
If you had opted for the annual payment, the insurer reimburses the overpayment, i.e. the share of your premium: if you cancel 6 months before the expiry of the contract, it reimburses you the sum corresponding to these 6 months.
1. MOVING OR CHANGE OF SITUATION
You can cancel your car insurance if you change your domicile by moving to an entire new place.
This case mostly occurs when the individual got a new job at a very distant location.
Or it could be that they decided to change their residence to another region or country.
So with this, cancellation of car insurance have to occur.
2. CHANGE OF SITUATION OR MATRIMONIAL REGIME
You can cancel if:
- You get married
- You are at a peace
- You divorce
- You separate
- Your spouse dies
- You adopt a marriage contract or modify the one you already have.
3. CHANGE OF OCCUPATION
The law allows you to terminate if you change jobs.
Please note: The fact of losing your job, being unemployed or receiving the RSA does not constitute a reason for early termination.
You can terminate if you retire or permanently cease your professional activity.
This is one of the most cases which occurs over the country.
Since the source of income has been affected, then cancellation of car insurance is very possible.
5. VEHICLE DESTRUCTION
If the car is destroyed by an event covered by your contract, the insurance applies normally and you cannot cancel.
But if it is destroyed by an event for which you are not covered, for example by a fire while you are insured against third parties, the contract ends automatically. You just have to notify the insurer.
What are the other cases of early termination?
Your contract may provide for other cases of early termination. Consult the general conditions to know the conditions and deadlines to be respected.
1. YOUR INSURER HAS INCREASED RATES
Some contracts provide that an increase in rates may justify termination. This increase is often subject to a minimum threshold, below which the insured cannot cancel.
Please note, this is indeed an increase in the insurer’s rates, and not the result of a penalty or a legal or regulatory tax.
2. YOUR INSURER HAS TERMINATED ANOTHER OF YOUR CONTRACTS
Your insurer may be required to terminate one of your policies following one or more claims. If your contract provides for it, you can request the cancellation of the other insurances that you have taken out with this insurer.
You must apply within one month and the contract ends one month after your application. The insurer must reimburse any overpayment.
Be careful, never stay without car insurance, it is compulsory.
The driver must at least have a civil liability guarantee, which insures him against damage caused to third parties.
If your insurance costs you too much, also consider modifying your contract to choose a more economical formula.
Car insurance: how to cancel?
To cancel your contract, you must send your insurer a cancellation letter by registered mail. Otherwise the insurer is entitled to refuse the end of the contract.
The acknowledgment of receipt is not required by law, but recommended: it can be used as proof in the event of a problem.
Don’t forget to date, sign and attach any document proving your change of situation: copy of the transfer certificate if you are selling the car, proof of residence if you have moved (electricity bill, exit inventory).
Cancel your insurance by sending a registered letter with AR to your insurer.
We offer you a personalized termination letter, ready to send. This letter is pre-filled with the mandatory information
1. TERMINATION LETTER SALE OF THE CAR
You can send the letter to the head office of the insurer or to the agency with which you took out your contract.
We recommend this second solution instead, because your request will be processed more quickly.
Discover our exclusive study on the reasons for termination.
Most time, the insurer are not happy when any individual cancels his or her car insurance.
But in several cases, people don’t wish to terminate their car insurance. This is mostly caused by unexpected incidence or decision.
However, I hope you were able to understand the concept of car insurance cancellation.
Incase if you have any question or suggestion, you can let us know by commenting below.